LOCKDOWN DAY 8

By the close of trade on Thursday, the South African rand weakened against the US dollar.

  • The COVID-19 pandemic led to fragile investor risk sentiment.
  • It was all about the blockbuster move in Oil on Thursday, with the energy instrument right at the epicenter of the moves that unfolded in currencies, bonds, equities, credit and volatility. The US President Donald Trump tipped CNBC news that he was about to tweet a market-moving tweet in which he took pride of ‘brokering’ a potential reconciliation between the Saudis and Russians for an eventual 10-15 Million Barrels Per Day [mbpd] oil productions cut. It was a wild ride from there, with Brent almost 50% up at one stage before the dust settled.
  • In the US, initial jobless claims surged last week, doubling the previous week’s record rise. In the past two weeks initial unemployment claims soared by nearly 10 million. That’s enough by itself to cause a huge spike in the unemployment rate.
  • A separate report showed that the US trade deficit narrowed in February.
  • The yield on benchmark government bonds ended mixed yesterday. The yield on 2021 bond declined to 4.94% while that for the longer-dated 2030 issue rose to 11.18%.

In early trade on Friday, the US dollar is trading 0.5% higher against the South African rand at R18.5593, while the euro is trading 0.4% higher at R20.1312.  The British pound has gained 0.3% against the South African rand to trade at R22.9703.

By the close of trade on Thursday, the euro mostly declined against most of the major currencies.

  • The eurozone’s producer price index (PPI) dropped further on an annual basis in February.

In early trade on Friday, the euro has slipped 0.1% against the US dollar to trade at $1.0852, while it has gained 0.1% against the British pound to trade at GBP0.8767.

NOVEL CORONAVIRUS STATS

1,002,818 confirmed cases

52,571 reported deaths

209,997 recovered*

 South Africa

Confirmed 1,462

Dead 5

Recovered 95

Confirmed  Today 0

Died  Today 0

Last updated Apr 3, 2020